Benchmark Protocol Token Review
Today ill drop a DeFi video review (which was sponsored, but was given all tools to be objective about it). Now I've talked about elastic tokens before and my personal consensus is that they are usually token investments that require a day trading mindset and you have to just observe the charts a lot to make a profit. Now that's not something my style is favorable too, so that's not something I like to invest in generally. However, there are people who specialize in day trading and short-term investments in general so these people will thrive in these types of setups.
Benchmark Protocol is a Supply Elastic Collateral and Hedging Device, Driven by the Volatility Index (VIX) and New York Stock Exchange (NYU). The MARK Token augments supply based on the Special Drawing Rights (SDR). The SDR is a composite international reserve asset, comprised of the U.S. Dollar, Euro, Great British Pound, Chinese Yuan, and Japanese Yen.
So let's get started with points that makes this project special and different from rest of elastic tokens. To break it down to some simple perks and attributes i would put it like this
- Non-anymous team, there are actual linkedin profiles in their website
- There is a security audit done on the smart contract by Certik
- Multiple high profile partners and collabrators
- Innovative model on existing Elastic supply token scene
- Single Token staking not having to worry about IPL on LP tokens
I also do like the inherently decentralized nature of the token, once staked it turns into xMark that is used for governance to change things how often and how much rewards, for example, are within the ecosystem.
Deviation of the market price of MARK from the target price triggers a supply adjustment or rebalance. This adjustment is applied as percentages over a 10-day sequence. To anticipate near term price development and incorporate predictive market sentiment, the 5-day Simple Moving Average (SMA) of the closing price of the VIX is layered into the rebalancing algorithm.
Now it obviously needs to be said there is high amount of risk with elastic tokens and DeFi stuff in general, because things get trendy and well... then they are not trendy. It just had a massive pump and then it went down
Overall its a promising project and their roadmap has also stated that they are working for insurance elements, also having the project existing on solana's blockchain could be a game changer in my opinion, but as of right now i'm not sure is that gonna take place.